courtesy of Catherine Reagor, The Republic
Buyers sh
opping for a new house in metro Phoenix might find prices a little lower than a few months ago.
Buyers shopping for a new house in metro Phoenix might find prices a little lower than a few months ago.
The median price for a new home in the Valley fell to about $292,000 in June from almost $305,000 in May, according to information from RL Brown Reports.
Sales of new and existing homes have been lower than expected during the past few months as fewer buyers pull the trigger. But the median resale home price has hovered around $205,000 for the past few months.
Some builders, but not all, in the Phoenix area are lowering home prices to draw more buyers. At the same time, some new homebuyers are opting for less pricey houses and add on amenities.
Housing analysts Brown and Greg Burger don’t expect new home prices to climb significantly until demand and sales of new homes jumps.
Meritage Homes sold 95 houses across the Valley in June, making it the region’s top builder. Taylor Morrison was second with 79 home sales, and Beazer Homes was third with 62.
Beazer’s Morningstar Farms community in the southeast Valley’s San Tan Valley was the most popular community with buyers in June. Last month, the homebuilder said 19 new homes sold in the development.
Rent increases slowing
Renters signing deals for Phoenix-area apartment probably won’t see a drop in rents, but the monthly increases in rents are slowing.
The average rent for an apartment in the region was $820 in June, compared with $817 in May of this year and $783 in June 2013, according to the Dallas-based apartment research firm Axiometrics.
Rents could stabilize soon and possibly drop later this year as more apartments are built in the Valley.
Last year, about 2,900 units were built in the Phoenix area. This year, 5,500 units have been built or are under construction. Next year, plans call for about 4,900 units to be developed across the region.
The number of apartments occupied by renters dipped slightly in June, a trend that could lead to lower rental rates.